20 mobile commerce terms you may not know, but probably should

Are you well-versed in mobile commerce? If not, here are 20 terms explained to help you on your sweet merry way.

Mobile commerce is growing and is estimated to reach $142 billion this year compared to $115 billion in 2015, according to Forrester. That’s right – it’s not going anywhere anytime soon.
To make sure that you know what you’re talking about, we have gathered together some of the more popular terms, allowing you to look like an “m-com” guru in front of all of your marketing chums. (We’re nice like that!)

In alphabetical order (with the exception of the first):

1. Mobile commerce/ m-commerce/ m-com

Whatever you prefer to call it, m-commerce is used to describe consumers’ activities around initiating or completing online electronic commerce transactions via their wireless devices, such as laptops, tablets, mobile phones, or smartwatches.

2. API

The term is short for application program interface. In simple English, API serves as a key for accessing a network’s data. Many social networks – such as Facebook, Pinterest, and Instagram – have offered marketing APIs.

3. Authentication

Authentication is a security mechanism that verifies an individual’s or an entity’s identity, or confirms the level of authority of that person or organization.

4. Cloud-based payments or host card emulation

This payment technology stores payment credentials in the cloud. Both Visa and MasterCard have been conducting host card emulation supported mobile payment services.

5. Closed-loop card or application

A credit card, gift card, or an app that can only be used to purchase from a single brand, such as Starbucks app or Macy’s gift cards. In comparison, open-loop cards like Visa can be used almost anywhere.

16. Payment gateway

17. Point of sale (POS)

The time and place a sale takes place. POS also refers to the devices used to transmit the transaction, such as card readers connected to smartphone apps.

18. Tender steering

When a retailer offers consumers incentives that encourage the use of a particular card payment method.

19. Tokenization

Tokenization is a data security process that involves replacing sensitive data with a unique identifier that has no exploitable value. It is one of the major practices to make cloud-based mobile payment transactions.